Well, they lost Paris, so there is *some* level of loss of National Pride, but of course not as bad as the Germans. (Who at this point could easily be conquered by the French even if everyone else went home).
So iOTL, damage to Pride was about equal in 1871 and WWII and minimal in WWI, iTTL, WWII is a bit more damaging to Pride than WWI, but no where near 1871.
The other question to be answered by the author is, "While there will not be formal zones, will it still be considerably more useful to learn French in Munich than in Lubeck?"
As for annexation, while Poland is likely to get some of Germany, would the borders change in the West?